10/27/2015

SamsungElectipsbetterthanexpectedQ3profit:::DailyFTBeEmpowered

Tuesday Oct 27, 2015

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BETTER-THAN-EXPECTED Q3 PROFIT

Samsung Elec tips better-than-expected Q3 profit

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SamsungElectipsbetterthanexpectedQ3profit:::DailyFTBeEmpowered

Reuters:SamsungElectronicsCoLtdforecastasharpjumpinquarterlyprofit,trumpingexpectations
andsendingitssharessurgingasfavourablecurrencyratesandrobustcomponentsalesappeared
havetooffsetweaknessinsmartphones.
Theextentoftheexpectedquarterlyprofitgain,itsfirstintwoyears,willdomuchtoallayconcernsthat
theSouthKoreantechgiantsearningswouldnotbeableshakeoffthelossofsmartphonemarket
sharetoAppleIncinthepremiumsegmentandtoChineserivalsatthelowerend.
SamsungElectronicsestimatedJulySeptemberoperatingprofitwouldleap80%fromayearearlierto
7.3trillionwon($6.3billion),higherthana6.7trillionwonprofitThomsonReutersSmartEstimate
derivedfrom30analysts.
Therewereworriesthatoverallearningswillcontinuefallingasmobileprofitsdeclined,butnowthe
numbersmakethecasethatSamsunghasthecapacitytowithstandweaknessfromthemobile
business,saidIBKSecuritiesanalystLeeSeungwoo.
Itsstockjumped8.7%,thebiggestdailypercentagegaininnearlysevenyears.Butitremainsdown
5.7%sofarthisyear,underperforminga4.7%advanceforSouthKoreasbenchmarkindexduetothe
longstandingworriesaboutitsearningsoutlook.

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SamsungElectipsbetterthanexpectedQ3profit:::DailyFTBeEmpowered

longstandingworriesaboutitsearningsoutlook.
TheworldsNo.1makerofsmartphonesandmemorychipsguidedfora7.5%revenueincreaseforthe
thirdquarter,inlinewithexpectations.Itgavenofurtherdetailsaboutitsperformance,andwilldisclose
fullresultsinlateOctober.
A12%depreciationoftheaveragewonexchangerateagainstthedollarinthethirdquarterwaswidely
citedasakeyfactorbehindthebullishearningsforecast.DongbuSecuritiesanalystYooEuihyung
estimatedthefavourablecurrencyrateaddedabout300billionwontooperatingprofit.
AnalystsalsosaidSamsungschipdivisionlikelyremaineditstopprofitcontributorforafifthstraight
quarterduetonewsmartphonelaunchesfromarangeofmanufacturers,whiledisplayprofitswere
probablyhelpedbyrisingsalestoclientssuchasHuaweiTechnologiesCoLtd.
AndwhileSamsunghasyettoregainlostmarketshare,smartphoneearningslikelyimprovedfroma
yearearlieronthebackofnewlowerendmodelsandtheAugustlaunchoftheGalaxyNote5a
premiumlargescreenphone.
SouthKoreastoptwomobilecarriers,SKTelecomCoLtdandKTCorp,alsosaidSamsungwillcut
pricesforGalaxyS6modelsbyasmuchas124,300wonstartingThursdayamovethatcouldboost
salesvolumebutalsohurtmargins.Samsungdeclinedtocommentonthepricecuts.
HDCAssetManagementfundmanagerParkJunghoonsaidfourthquarteroperatingprofitwould
probablyeasefromthethirdquarterduetohighersmartphonemarketingbillsaheadoftheyearend
holidays.

SamsungElecsaysmobilepaymentsdata
safeafterLoopPayhack
Reuters:TechgiantSamsungElectronicsCoLtdsaiditsSamsungPayuserdataissafeaftera
hackingattackagainstaUSbasedsubsidiarythatdevelopedakeytechnologyforitsnewlylaunched
mobilepaymentssystem.
Disclosureoftheattack,firstreportedbytheNewYorkTimesonWednesday,comeslessthantwo
weeksafterSamsungPayslaunchintheUnitedStates.Theworldstopsmartphonemakerhopesthe
convenienceprovidedbythepaymentssystemcanhelpitdefendshrinkingmarketshareandmargins.
TheLoopPaycorporatenetworkissuewasresolvedimmediatelyandhadnothingtodowithSamsung
Pay,Samsungsaidinastatement.
ChinesehackersgainedaccesstoLoopPaysofficenetworkaroundMarchandthebreachwas
discoveredinAugust,Samsungsaid.LoopPaydevelopedthetechnologyenablingSamsungPayto
workwithmagneticstripecardreadersprevalentatretailstores,seenasakeyadvantageoversimilar
servicesfromAppleIncandGoogleInc.
TheSouthKoreanfirmsaidSamsungPaywasoperatedbyitsownmobiledivisionandwasona
physicallyseparatenetworktoLoopPays,givingthehackersnoaccesstouserdataorothercore
information.
ThethreecompromisedLoopPayserversdidnotstoresensitiveinformationincludingtechnologies
developedbythefirm.YuantaSecuritiesanalystLeeJaeyunsaidthehackcouldneverthelesstrigger
securityconcernsandslowuseradoptionofSamsungPay.

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